In their latest quarterly report power market, specialists at Icis said that tensions in Ukraine had led to some of the largest day-on-day price moves, as the market reflected the volatility in the region.
“Russia does not export gas to the UK directly, but any interruptions of Russian gas supplies to continental Europe would have a knock-on effect on the UK market,” Icis explained.
In addition the price reporting agency said its Icis Power Index (IPI) climbed from lows of £46.373/MWh on 10 July to just over £52/MWh by the end of September due to the unexpected shutdown of almost 3GW of nuclear capacity ahead of winter.
At the time Utility Week reported that the UK’s supply margins could halve after the unexpected loss of four of EDF Energy’s nuclear reactors, which were taken offline due to safety concerns.
EDF Energy is planning a staggered return for its nuclear units through the first half of winter, causing power for delivery in the final months of the year to climb.
Although the IPI price trend over the whole year is still lower than January, the latest price moves could still cause energy companies to raise their retail prices, Icis head of power Zoe Double said.
“Energy companies are actively buying and selling electricity in the market right now for delivery over the next year, so any price rises on the wholesale market could affect what consumers pay later on,” Double said.